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    OneSolution's Avatar
    OneSolution Posts: 54, Reputation: 1
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    #1

    Jan 18, 2010, 08:11 AM
    Sold a Car and bought new.Can deduct losses?
    I had bought the car in 2007 at $4000..

    I had a car which I met with accident in 2009 and spend about 1500 on it. And then sold the car at $1500 cash.



    Then in 2009, bought a new car on loan.

    Is it possible to show the loss somehow and the expenses ? I am sure I can claim the sales tax for the new car
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jan 18, 2010, 10:35 AM

    Your loss due to the accident may be deducted, only to the extent that the loss exceeds 10% of your Adusted Gross Income. You use Schedule A and Form 4684: http://www.irs.gov/pub/irs-pdf/f4684.pdf . If your accident resulted in $1500 of repairs, then that's the amount of your loss (you can not include normal wear and tear or depreciation of market value of the car). Given that in a previous post you said your income was $55K - you can not deduct this loss.
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